The rate of retail spending increased from February to March, but the majority was spent at the gas pump.
The spike in gas prices brought on by the Iran war led to a 1.7% gain in retail sales during the month of March after a 0.7% increase in February, the Commerce Department announced in its report shared Tuesday (April 21) via ABC News, which serves as the first read on spending based on the effects of ‘Operation Epic Fury.’ The number was, however, only 0.6% if gas prices were excluded.
Business at gas stations increased by 15.5%, while sales at department stores rose 4.2%, furniture stores by 2.2% and online retailers by 1%. Iran initially blockaded the Strait of Hormuz, which serves as a vital waterway for trade along the Persian Gulf responsible for an estimated 20% of the world’s oil supply traveling through, in response to the United States and Israel’s ‘Operation Epic Fury’ prior to its ceasefire agreement and again after the Israeli attacks on Lebanon.
The blockade has led to gas prices soaring in the United States as the price of oil surpassed $100 per barrel multiple times. The average price of gas in the United States is currently $4.022, which is lower than the $4.042 average one day prior and the $4.118 average one week prior, but higher than the $3.925 average one month prior and the $3.153 average one year prior, according to the American Automobile Association.
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